water senegal
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CNYEUREGPJODLBPLKRMURXAFXOFCNYEUREGPJODLBPLKRMURXAF
AFA, AFN, XAG, MGA, THB, PAB, ETB, VEB, VEF, BOB, GHC, CRC, SVC, NIC, NIO, DKK, EEK, ISK,
NOK, SKK, SEK, CZK, CSK, GMD, MKD, DZD, BHD, IQD, JOD, KWD, LYD, RSD, CSD, SDD,
TND, YUD, YUM, AED, MAD, STD, AUD, BSD, BZD, BMD, BND, KYD, CAD, XCD, FJD, GYD,
HKD, SBD, JMD, BBD, LRD, NAD, NZD, SGD, SRD, TWD, TTD, USD, USS, USN, ZWD, ZWR,
ZWL, VND, GRD, AMD, XDR, CVE, MZE, PTE, TPE, EUR, CHE, ANG, AWG, NLG, HUF, ADF, BEF, BIF, KMF, CDF, DJF, FRF, GNF, LUF, MGF, RWF, CHF, XOF, XAF, XPF, XFO, XFU, CHW,
HTG, PYG, UAH, PGK, LAK, HRK, MWK, ZMK, AOA, AOK, AON, AOR, MMK, GEL, LVL, ALL, HNL, SLL, MDL, ROL, RON, BGL, BGN, SZL, MTL, ITL, SML, VAL, LTL, CYP, EGP, FKP, GIP, IEP, LBP, SHP, SDP, SDG, SYP, TRL, TRY, GBP, LSL, AZM, AZN, TMM, TMT, DEM, BAM, FIM, MZM, MZN, BOV, ERN, NGN, BTN, XAU, MRO, TOP, XPD, MOP
Country : SenegalISO member body : Standardization Association of Senegal (ASN)Project team :Project leader : Mr. El hadji Abdourahmane Ndione, Head, Chemistry Office, ASNConsultant : Mr. Khadim Seck, Polytechnic School of Thies, Thies (Senegal)Member : Mr. Barama Sarr, Director General, ASNMember : Mr. Ibrahima Khalilou Cissé, Polytechnic School of Thies, Thies (Senegal)Member : Mr. Abdourahmane Ba, Manager, Quality, Safety and Environment, SDEISO Central Secretariat advisor : Daniele Gerundino, Strategic Advisor to the Secretary-GeneralDuration of the study : July – December 2011
Water Senegal, Senegal
10
270 Economic benefits of standards Senegal – Water Senegal
10.1 Objectives
The assessment of the economic benefits of standards is extremely
important for tracking and prioritizing standardization activities. It
aims to raise awareness and improve communication, while promot-
ing the use of standards and encouraging stakeholder participation.
The assessment of the economic benefits of standards is designed to :
• Allow stakeholders from private and public sectors to better ap-
preciate the economic and social impact of voluntary consensus
standards
• Sensitize policy makers and business leaders to the importance
of standardization
This report presents the result of a project that took place from July
to December 2011 with the collaboration of la Sénégalaise des Eaux
(SDE), the Polytechnic School of Thièse, the ISO member for Sen-
egal – the Senegalese Association for Standardization (l'Association
Sénégalaise de Normalisation (ASN), and ISO.
10.2 The selected company
10.2.1 SDE in summary
Recognized internationally, SDE is a reference in Africa for the man-
agement of drinking water services. Its successful performance has
greatly contributed to the viability of Senegal's urban drinking water.
271Economic benefits of standards Senegal – Water Senegal
Geographic distribution of regional plants
• Regional offices• Port of call-Centre
Figure 1 – Geographic distribution of regional plants
SDE operates in the institutional framework described below :
• The State of Senegal defines the global policy
• The National Water Company of Senegal (SONES) is responsible
for asset management, for project management of renewal and
extension works on the infrastructure, and for quality control
operations
• SDE is responsible for operations
• The National Sanitation Office (ONAS) is responsible for sanita-
tion operations
272 Economic benefits of standards Senegal – Water Senegal
Founded in December, 1995, and situated in Dakar, Senegal’s capital,
SDE is a private limited company with a capital of XOF 3 billion (CFA 1)
Francs), distributed as follows :
• 58 % for the company Finagestion, a subsidiary of the French
group Bouygues
• 32 % for private Senegalese investors
• 5 % for the State of Senegal
• 5 % for company staff
As a national company, SDE is composed of regional offices across
the country that report to the head office in Dakar.
SDE is responsible for :
• Operations and maintenance of infrastructure and equipment
• Renewal of operational equipment
• Contractual renewal of networks, connections, meters and elec-
tromechanical equipment
• Network extensions financed by third parties
• Study and justification of renewal work and infrastructure expansion
• Billing and receipt of payment for drinking water and sanitation
• Communication and customer relations
SDE has managed the production and distribution of drinking wa-
ter for Senegal's 56 largest urban sites since April 1996. In 2010, its
turnover was XOF 73.1 billion on production of 146 million cubic
meters of drinking water, an increase of 5.3 % compared to 2009.
It serves 520 000 customers representing 5 million people, and has
1 139 employees (as at 31 December 2010).
Some key SDE statistics are given in Figure 2 and Figure 3 :
1) Fixed exchange rate with the Euro : 1 Euro is equal to XOF 655.957 (CFA Franc BEAC)
and XOF 1 is equal to 0.001524 Euro.
273Economic benefits of standards Senegal – Water Senegal
2004 2005 2006 2007 2008 2009 2010
Production in thousands of m3 118 710 124 720 129 218 135 390 138 081 139 733 146 973
Number of staff 1 161 1 155 1 148 1 125 1 139 1 125 1 139
Recovery rate in % 98.3 97.86 98.2 93.73 93.73 97.6 n/a
Customers 383 008 412 304 433 675 461 887 485 921 502 238 519 756
Network yield in % 80.1 80.1 80.2 80.3 79.06 80.58 79.05
Turnover in billions (CFA) 44.3 46.3 49.8 57.3 59.8 58.7 73.1
0
100
200
300
400
500
Turnover in billions (CFA)
Network yield in %
Customers
Recovery rate in %
Sta�
Production in thousands of m3
2004 2005 2006 20072004 2008 2009 2010
Figure 2 – Statistical evolution of SDE in key indicators
274 Economic benefits of standards Senegal – Water Senegal
2004 2005 2006 20072004 2008 2009 20100
200
400
600
800
1000
1200
Customers in thousands
Number of employees
2004 2005 2006 2007 2008 2009 2010
Number of employees 1161 1155 1148 1125 1139 1125 1139
Customers in thousands 383 412 434 462 486 502 520
Figure 3 – Evolution of SDE customers and employees
10.2.2 SDE and its partnerships
SDE maintains a corporate citizen profile by conducting numerous
activities at the national level. An approach integrating drinking
water, education, health and sanitation is typical of the projects that
fit within its framework of sustainable development.
At the international level, specific partnerships are established with
African water companies to improve benchmarking measures and
support in specific areas. Agreements with French companies exist
to support the implementation of new tools and the development
of staff skills.
275Economic benefits of standards Senegal – Water Senegal
SDE is bound to SONES by a performance contract concerning the
technical and financial performance to be achieved. The contract
aims to improve the public water sector through :
• Quality of service
• Continuity of service
• Quality of water
• Transparency of billing
• Reduction in water losses
• Recovery rate performance from all subscribers
The performance contract is reviewed at intervals with a view to
finding solutions that safeguard the interests of each entity and of
shareholders.
Technical meetings are routinely held between managers of SDE and
the staff of SONES to deal with specific subjects such as production
orders, the contract renewal programme, the five-year plan, the an-
nual fee, billing, collecting of payments, etc.
10.2.3 SDE and consumer organizations
SDE favours good relations with consumer organizations and has
established a permanent dialogue with these organizations and with
its clients in order to efficiently manage quality of service, requests
and claims.
10.2.4 SDE and its suppliers
Special conditions are applied to the purchase of products, services
and outsourcing that have a direct impact on service quality. SDE
evaluates its suppliers/service providers and subcontractors, and
selects and defines specific terms to be fulfilled before purchasing.
276 Economic benefits of standards Senegal – Water Senegal
For outsourced services SDE has designed strict rules to be applied
for the control of its activities, tailored to the risk involved.
Moreover, SDE aims to develop the skills of its sub-contractors in the
fields of safety and the environment through awareness of its QSE
(quality, safety, environmental) policy and by encouraging them to
comply with statutory and regulatory requirements, particularly with
regard to markup, wearing of personal protective equipment (PPE), etc.
10.3 Attitude of the company towards standardization
10.3.1 Commitment towards standardization
SDE has become a driver for standardization by helping ASN to
popularize the use of standards and to educate people through in-
creased training. The attitude of SDE to standardization is illustrated
by its certifications :
• ISO 9001:2008, Quality management systems – Requirements,
providing a model for quality assurance in design/development,
production, installation and servicing for its entire area and activities
• ISO 14001:2004, Environmental management systems – Requirements
with guidance for use, providing specifications with guidance for
use for its entire area and activities (with the exception of the
factory at Khor)
• OHSAS 18001, Occupational health and safety management systems
– Requirements, covering its entire area and activities.
SDE encourages its sub-contractors to comply with standards for the
occupational safety of their employees (compliance with PPE equip-
ment, vehicles, prevention plans, certification to OHSAS 18 001) and
this requirement is gradually being introduced into new contracts.
277Economic benefits of standards Senegal – Water Senegal
10.3.2 The strategic role of the quality policy
After a successful start in 1996, SDE faced numerous problems in 2000 :
• Despite a rapid increase, performance did not meet contractual
targets, and penalties were imposed in line with its performance
contract with SONES
• Customer requirements changed, focusing mainly on quality of
service (zero water shortage)
• Employees had high expectations
• Work volume increased considerably
• The performance contract became increasingly demanding
To adress these challenges, SDE implemented a project designed to be :
• Motivating for staff
• Generating rapid productivity gains, significant in all areas, par-
ticularly in operations and works
• Innovative in terms of listening and meeting the new demands
of the consumer
• Enhancing for national expertise (institutional customers and
suppliers) and to allow the signing of a contractual amendment.
The setting up and success of this project led SDE to adopt a highly
structured quality approach including clear links between the stra-
tegic lines of the company and their implementation “ by process ”
and business function.
In this respect, the annual “ Public letter of engagement “, issued by
the CEO at the beginning of the year, has an essential role : it sets the
key objectives and policies of the company and is used as a basis for
defining the specific objectives and tasks for each organizational unit.
278 Economic benefits of standards Senegal – Water Senegal
SDE's vision and values are summarized in Figure 4, along with an
extract of the public letter of commitment for 2011 :
•The quest for performance•Respect of our commitments•Equity in all our actions•A permanent team spirit•Protection of men and the environment
Extract of the public letter of commitment 2011•Biological-chemical quality of water 99.5 % compliant•Network performance at 80 %•Customer complaints answered 100 % within the limits of
the contract•Bill recovery rate of 98.3 %•Ordinary connections made within 15 days
•Satisfy customers and become an international reference in water services
Vision
Values
Figure 4 – SDE’s vision and values
The main objectives for 2011 were defined in four areas of which
customer satisfaction had top priority. These were :
• Customer satisfaction
• Health and safety of colleagues as well as their professional
development
• Protection of the environment
• Optimization of processes
279Economic benefits of standards Senegal – Water Senegal
10.4 Analysis of the value chain
10.4.1 Industry value chain
In Senegal, the water industry is structured around three functional
areas of responsibility or sub- sectors represented by Figure 5 below :
Water sector
Sub-sector : management and planning
of water ressources
Sub-sector : rural water
Urban water (SDE area of responsibility)
Sub-sector : urban water and sanitation
Sanitation
Figure 5 – Senegal’s water industry structure
Operating in the urban water sector, SDE is responsible for the tech-
nical and financial management of state owned assets in this sector.
SDE and ONAS have the monopoly of the Senegalese urban water
market, and so far they remain the only companies specialized in
water supply and sanitation.
280 Economic benefits of standards Senegal – Water Senegal
10.4.2 Company value chain
With respect to the collection, treatment and distribution of water,
SDE has a structured management. Just like any business, its value
chain consists of main functions (refer to as “ strategic process ”) and
support functions (“ process support ”) as represented in Figure 6 :
General administration, Human resources and Financial management
Technical management
Purchases and logistics
Quality management
Information management
Communication management
Customer demand
Collection/Treatment/Distribution
Maintenance
Customer and sales
Works
C U S T O M E R S
Process support
Strategic process
= Focus of the case study
Figure 6 – SDE’s company value chain
10.4.3 Key value drivers
SDE's key value drivers concern the improvement of Senegal's ur-
ban water sector, and are directly linked to binding elements in the
performance contract with SONES.
The list of value drivers and associated operational indicators are
given in Table 1.
281Economic benefits of standards Senegal – Water Senegal
Value drivers Operational indicators
Quality and quantity of water
• Respect of the production plan : 100 %• Rate of bacteriological and physico-chemical compliance > 98.7 %• Rate of pressure below 1 bar (every 4 months)
Maintenance – electromechanical and network
• Response time for return to service (dosage pumps, chlorine meters and rain water management) : 100 %
• Rate of availability of an emergency generator on critical sites : 100 %• Rate of work requests classified C1 (direct impact on service continuity or staff
safety) completed within time limits : 100 %• Rate of leakage isolated and repaired within time limits : 100 %• Hydraulic efficiency of the network : 80.5 %
Efficient billing, recovery and customer relations management
• Rate of increase in sales >= 1.7 %• Rate of estimated billing <= 1.5 %• Rate of recovery : 98.3 %• Rate of cancellation <= 1.5 %• Customer satisfaction >= 85 %
Performance of engineering projects (re : the network's expansion)
• Rate of achievement of connections within time limits• Rate of road repairs within 15 days for Dakar and 30 days for the region• Turnover of engineering works
Table 1 – List of value drivers and associated operational indicators
It should be emphasized that customer satisfaction is a key factor
for the renewal of SDE's contract with the State and that, in 2010,
the customer satisfaction survey gave a result of 86 %, above SDE's
stated objectives.
10.5 Scope of assessment of the pilot project
The scope has been limited to those functions where the use of
standards is particularly visible, and to those activities more closely
related to the company's value drivers.
282 Economic benefits of standards Senegal – Water Senegal
Global managment
Capture/Treatment/Distribution Marketing & sales
Engineering projects Technical supervision
Purchasing & logistics
Communication/Information
Budget controlMaintenance
Figure 7 – Scope of assessment of the pilot project
10.6 Standards used in the company value chain
Functions Standards used Comments or definitions
General administration
ISO 9001ISO 14001OHSAS 18001
ISO 9001 is the most relevant
Purchasing & logisticsISO 9001ISO 14001OHSAS 18001
No specific product or testing standards are used for checking products
Production
Afnor XP T 90-401Afnor NFT 90-414Afnor XP T 90-416ISO 9001ISO 14001OHSAS 18001WHO standards : Quality of drinking water
Note :• AFNOR XP T 90-401 : Testing water – Enumeration of
micro-organisms revivable at 37 degrees celsius – Pour-plate technique
• AFNOR NF T 90-414 : Water quality – Detection and enumeration of Escherichia coli and coliform bacteria – Part 1 : membrane filtration method
• AFNOR XP T 90-416 : Testing water – Detection and enumeration of enterococci – General method by membrane filtration
•WHO standards in the form of Directives related to water quality are used for water treatment and disinfection
283Economic benefits of standards Senegal – Water Senegal
Technical supervision (Research & development)
ISO 9001ISO 14001OHSAS 18001Fascicule 71
Fascicule 71 is a technical regulation of the French governmental Ministry of Ecology, Sustainable development and Energy giving the general technical conditions for the supply and installation of aqueducts and water distribution applicable to civil engineering works
Maintenance
ISO 9001ISO 14001OHSAS 18001NF C 15-100NF X10-601NEMA standards
Note :• Some NEMA standards (National Electrical Manufacturers
Association of the USA) are used (more detailed information not available)
• AFNOR NF C 15-100, Low-voltage electrical installations• AFNOR NF X10-601, Centrifugal, mixed flow and axial
pumps – Code for acceptance tests – Class C
Engineering
ISO 9001ISO 14001OHSAS 18001Fascicule 71
Fascicule 71 is a technical regulation of the French governmental Ministry of Ecology, Sustainable development and Energy giving the general technical conditions for the supply and installation of aqueducts and water distribution applicable to civil engineering works
Customer service Marketing & sales
ISO 9001ISO 14001
Customer services and sales do not use any specific standard
Quality management
ISO 9001ISO 14001OHSAS 18001NS 05-061 : water dischargesNS 05-062 : air pollution
Note : NS stands for “ Norme Senegalaise “• NS 05-061, Management of water discharges (this
standard is an adjunct to the Environmental Code of Senegal)
• NS 05-062, Air pollution. Discharge standards
Table 2 – Standards used in the company value chain
284 Economic benefits of standards Senegal – Water Senegal
10.7
Se
lect
ion
of o
pera
tiona
l ind
icato
rs to
mea
sure
the
impa
ct o
f sta
ndar
ds
Func
tions
Rela
ted
activ
ities
Valu
e dr
iver
sSt
anda
rds u
sed
Oper
atio
nal i
ndic
ator
sDe
finiti
ons o
f ind
icat
ors
Gene
ral
adm
inist
ratio
n
Glob
al m
anag
emen
t, gl
obal
acco
untin
g an
d fin
ance
ISO 90
01ISO
1400
1OH
SAS 1
8001
Tax a
dmin
istra
tion
Resp
ect o
f pay
men
t dat
es fo
r mon
thly
tax i
nsta
llmen
ts at
a ra
te of
100 %
Hum
an re
sour
ces
Cont
rol o
f cos
ts re
lated
to st
aff
Cont
rol o
f num
ber o
f sta
ffRe
duce
d sta
ff co
sts
Prod
uctio
n
Capt
ure-
disc
harg
e-di
strib
ution
Quali
ty of
pr
oduc
tion
proc
esse
s
AFNO
R XP
T 90
-401
AFNO
R NF
T 90-
414
AFNO
R XP
T 90
-416
ISO 90
01ISO
1400
1OH
SAS 1
8001
WHO
stan
dard
s : q
ualit
y of
drin
king
wate
r
Resp
ect o
f yiel
d ra
te
and
prod
uctio
n pl
anFa
ilure
to m
eet t
he yi
eld ra
te le
ads
to p
enalt
ies su
ch as
thos
e spe
cified
in
the c
ontra
ct b
indi
ng SD
E and
SONE
STre
atm
ent a
nd
disin
fect
ionQu
ality
of
proc
esse
s and
tre
atm
ent o
f pr
oduc
ts
Bacte
riolo
gica
l and
ph
ysico
-che
mica
lco
mpl
iance
Failu
re to
com
ply l
eads
to p
enalt
ies
Sub-
mai
nten
ance
(c
entr
aliz
ed
func
tion)
Main
tena
nce
Com
plian
ce w
ith
main
tena
nce
sche
dules
, cu
rativ
e and
pr
even
tive a
like
ISO 90
01ISO
1400
1OH
SAS 1
8001
NF 15
-100
Ele
ctro
mec
hani
cal
NEM
A sta
ndar
dsNF
X 10
-601
on p
umps
Resp
onse
tim
e and
eq
uipm
ent a
vaila
bilit
y (in
wor
king
orde
r)
The c
ontro
l and
redu
ction
of re
spon
se
time i
s key
to co
mpl
iance
with
th
e com
pany
's pr
oduc
tion
plan
285Economic benefits of standards Senegal – Water Senegal
Func
tions
Rela
ted
activ
ities
Valu
e dr
iver
sSt
anda
rds u
sed
Oper
atio
nal i
ndic
ator
sDe
finiti
ons o
f ind
icat
ors
Mar
ketin
g &
sale
s
Billi
ngISO
9001
ISO 14
001
OHSA
S 180
01
Sales
Incre
ase i
n sa
les
Reco
very
Mee
ting
the d
efin
ed
reco
very
rate
Mee
ting
or ex
ccee
ding
the r
ecov
ery
rate
allo
ws th
e com
pany
to in
creas
e its
turn
over
and
finan
cial p
erfo
rman
ceLis
teni
ng to
cu
stom
ers
Claim
s pro
cess
ed on
tim
eEff
icien
t man
agem
ent o
f cus
tom
er
com
plain
ts re
info
rces t
he q
ualit
y pol
icy
Engi
neer
ing
New
work
s and
re
newa
l wor
ksISO
9001
ISO 14
001
OHSA
S 180
01Fa
scicu
le 71
Conn
ectio
ns co
mpl
eted
on
tim
eEx
ecut
ion of
on-ti
me c
onne
ction
s he
lps i
ncre
ase s
ales a
nd co
ntrib
utes
to
custo
mer
satis
fact
ion
Tech
nica
l su
perv
ision
•Studies
•Surveillance
•Internal
mon
itorin
g
ISO 90
01ISO
1400
1OH
SAS 1
8001
Fasc
icule
71
Savin
gs on
ener
gy co
stsEn
ergy
costs
are m
ost s
igni
fican
t
Tabl
e 3
– Op
erat
iona
l indi
cato
rs to
mea
sure
the i
mpa
ct of
stan
dard
s
286 Economic benefits of standards Senegal – Water Senegal
10.8
Ca
lcula
tion
of th
e ec
onom
ic be
nefit
s of s
tand
ards
10.8
.1
Econ
omic
bene
fits q
uant
ified
dur
ing
the
asse
ssm
ent
Busin
ess
func
tions
(BF)
Oper
atio
nal i
ndic
ator
sFi
nanc
ial
impa
ct (X
OF)
Com
men
ts
Purc
hasin
g an
d lo
gist
ics
Staf
f con
trol
By u
sing
ISO 90
01, m
anag
erial
staf
f has
bee
n re
duce
d by
19 %
, and
wor
k vo
lum
e has
incre
ased
. Thi
s red
uctio
n is
expl
ained
by a
bet
ter c
ontro
l of
proc
esse
s. Th
e res
ult c
ould
be b
ette
r if t
he co
mpa
ny h
ad h
ighe
r per
form
ing
data
man
agem
ent s
oftw
are i
n pl
ace.
Spre
adin
g th
is re
duct
ion ov
er a
five
year
per
iod g
ives a
year
ly av
erag
e (19
%/5
) of 3
.8 %
.Th
eref
ore t
he im
pact
of th
e use
of st
anda
rds c
an b
e calc
ulat
ed as
follo
ws :
XOF 1
477 6
36 33
6 × 21
% ×
3.8 %
= X
OF 11
791 5
38
Man
agem
ent e
xpen
ses
1 477
636 3
36%
of st
aff c
osts
21 %
Effec
ts of
the u
se of
stan
dard
s (19
%
redu
ction
in st
aff o
ver 5
year
s)3.
8 %
Tota
l im
pact
for t
his B
F11
791 5
38
Gene
ral
adm
inist
ratio
n
Staf
f con
trol
Thro
ugh
the c
onsis
tent
impl
emen
tatio
n of
ISO
9001
, thi
s fun
ction
has
bee
n ab
le to
impr
ove p
rodu
ctivi
ty –
lead
ing
to an
appr
oxim
ate 1
0 % re
duct
ion in
sta
ff in
2010
.Be
caus
e sta
ff co
sts re
pres
ent 7
0 % of
the f
unct
ion’s
expe
nditu
re, t
he im
pact
of th
e use
of st
anda
rds c
an b
e calc
ulat
ed as
follo
ws :
XOF 9
45 41
9 532
× 70
% ×
10 %
= X
OF 66
179 3
67
Acco
untin
g an
d fin
ance
expe
nses
945 4
19 53
2%
of st
aff c
osts
70 %
Effec
ts of
the u
se of
stan
dard
s (10
%
redu
ction
in st
aff)
10 %
Tota
l im
pact
for t
his B
F66
179 3
67
Cust
omer
and
sa
les
Polic
y to
redu
ce p
aper
cons
umpt
ion
Appl
icatio
n of
ISO
1400
1 has
enab
led p
aper
cons
umpt
ion to
be r
educ
ed
by 8
%. T
his r
educ
tion
is m
ainly
due t
o a p
olicy
of tw
o-sid
ed p
rintin
g. Sp
read
ing
this
redu
ction
over
a six
year
per
iod (2
005 t
o 201
1) g
ives a
nnua
l av
erag
e sav
ings
of 1.
33 %
.Th
eref
ore t
he im
pact
of th
e use
of st
anda
rds c
an b
e calc
ulat
ed as
: XO
F 37 8
20 51
6 347
× 9
% ×
1.33
% =
XOF
45 27
1 158
Man
agem
ent e
xpen
ses
37 82
0 516
347
Shar
e in
pape
r sup
plies
9 %Re
duct
ion in
pap
er co
nsum
ption
in
resp
ect o
f the
envir
onm
ent b
y app
lying
ISO
1400
1.
1.33
%
Impa
ct 1
(of 3
)45
271 1
58
287Economic benefits of standards Senegal – Water Senegal
Busin
ess
func
tions
(BF)
Oper
atio
nal i
ndic
ator
sFi
nanc
ial
impa
ct (X
OF)
Com
men
ts
Cust
omer
and
sa
les
Incr
ease
in sa
les
An in
creas
e in s
ales o
f 4.8
% ha
s bee
n ach
ieved
in 20
10 ov
er 20
09. P
art o
f it
(abo
ut 3.
5 %) i
s due
to a
rise i
n the
num
ber o
f cus
tom
ers (
increa
sed d
eman
d).
The o
ther
shar
e (1.
3 %) i
s due
to in
creas
ed co
nsum
ption
.Th
e use
of st
anda
rds (
prim
arily
ISO
9001
) has
sign
ifica
ntly
cont
ribut
ed to
th
is pe
rform
ance
by :
•En
surin
g pe
rman
ent w
ater
qua
lity t
hrou
gh th
e mod
erni
zatio
n of
tool
s fo
r tec
hnica
l sur
veill
ance
, and
custo
mer
relat
ions m
anag
emen
t usin
g ES
RI (a
map
ping
softw
are i
nteg
ratin
g th
e call
cent
re an
d co
ckpi
t) an
d th
e pl
anni
ng of
inte
rven
tions
•10
0 % co
mm
itmen
t to t
he p
lan fo
r mon
itorin
g wa
ter q
ualit
yTh
e im
pact
of st
anda
rds c
an th
eref
ore b
e esti
mat
ed as
follo
ws :
XOF 7
3 100
000 0
00 ×
1.3 %
= X
OF 95
0 300
000
m3 t
urno
ver i
n sa
les73
100 0
00 00
0 In
creas
e in
sales
4.
8 %%
attri
buta
ble t
o sta
ndar
ds1.
3 %Im
pact
2 (o
f 3)
950 3
00 00
0
Impr
oved
reco
very
rate
A m
onito
ring p
roce
ss fo
r billi
ng (s
ettin
g up o
f two
rem
ote m
eter
s res
ulting
in
mor
e acc
urate
billin
g) en
abled
the r
ecov
ery o
f ove
r 200
000 m
3 at en
d 201
0.Th
e im
pact
resu
lting
from
the a
pplic
ation
of th
is pr
oces
s is t
hus e
stim
ated
at
: XOF
73 10
0 000
000 ×
0.17
% =
XOF
124 2
70 00
0
Tota
l sale
s 73
100 0
00 00
0 In
creas
e in
sales
owin
g to
the n
umbe
r of
m3 re
cove
red
0.17
%
Impa
ct 3
(of 3
)12
4 270
000
Tota
l im
pact
for t
his B
F1 1
19 84
1 158
Tech
nica
l su
perv
ision
Cont
rol o
f ene
rgy c
onsu
mpt
ion
Bette
r con
trol o
f plan
ning
and
oper
ation
s and
in p
artic
ular
a str
icter
cont
rol
of kW
h/m
3 – ac
tions
und
erta
ken
since
2007
in th
e fra
mew
ork o
f the
qua
lity
man
agem
ent i
mpl
emen
tatio
n (in
cludi
ng th
e set
-up
of an
ener
gy sa
vings
co
mm
ittee
in ch
arge
of re
viewi
ng th
e use
of en
ergy
) hav
e led
to 1.
54 %
sa
vings
in en
ergy
costs
.Th
e res
ultin
g im
pact
in 20
10 is
estim
ated
as fo
llows
: XO
F 13 1
00 00
0 000
× 1.
54 %
= X
OF 20
1 740
000
Annu
al ele
ctric
ity co
sts13
100 0
00 00
0Sa
vings
in en
ergy
achi
eved
thro
ugh
the
appl
icatio
n of
a m
anag
emen
t sys
tem
1.54
%
Tota
l im
pact
for t
his B
F20
1 740
000
Tabl
e 4
– Ec
onom
ic be
nefit
s qua
ntifi
ed th
roug
h th
e ass
essm
ent
288 Economic benefits of standards Senegal – Water Senegal
The Table 5 recapitulates the impacts expressed per department
and finally the total impact as a percentage of total sales revenues :
Functions Financial impact of standards
Purchasing and logistics 11 791 538
General administration 66 179 367
Customer and sales 1 119 841 158
Technical supervision 201 740 000
Total contribution to the company EBIT (in XOF) 1 399 552 063 Total contribution to the company EBIT (in EUR) (There is a fixed exchange rate with the Euro : 1.000 XOF equal 1,53 EUR)
2 133 600
Contribution to EBIT as percentage of total sales 1.91 %
Table 5 – Impacts expressed per department and total impact as a percentage of total sales revenues
10.8.2 Another advantage of standards : Improved control of the network
In addition to the impacts mentioned above, a significant improve-
ment in performance has been achieved through the actions below :
• The cutting off of water supply when populations move (this
has solved the problem of significant leakages in flooded areas)
• Reconfiguration of the Afia area of the network
• 85 pipe and pipeline leakages repaired in time, saving 260m3/h
water loss
These actions led to an increase in network performance of 5.15 %
between 2000 and 2010, a yearly average of 0.51 %. The current
performance (between 79 % and 80 % in the past few years) is not
yet at the 85 % level required by the contract with SONAS. However,
it should be noted that 85 % is a very ambitious target (even for
industrialized countries).
289Economic benefits of standards Senegal – Water Senegal
While the actions mentioned in relation to improved control of the
network have been undertaken and monitored in the framework
of SDE's quality management system (and the latter has clearly
contributed to achieving these results by supporting a continual
improvement philosophy), it has not been possible to estimate the
relative contribution of the use of standards in this area as compared
to other factors.
10.9 Qualitative and semi-quantitative considerations
10.9.1 Summary by business function
The rigorous implementation of ISO 9001 and other management
system standards has contributed to improving the monitoring and
control of all the SDE departments analyzed throughout the study.
A summary of the most important qualitative benefits indicated by
each business function is given below :
General administration
• A steady stabilization over time of costs related to maintenance,
caretaking, auditor fees and telephone
• Efficient monitoring of operational costs (electricity, diesel and
staff ) responsible for 60 % of expenditure, according to a policy of
improved productivity and more efficient management of electricity
Purchasing and logistics
Improvement in the supply of SDE's vehicle fleet through :
• Improved product conformity due to collaboration with suppliers
having integrated their management systems
• Shorter delays in reaching contractual agreements because
products are based on clearer specifications
290 Economic benefits of standards Senegal – Water Senegal
• More accurate forecasts due to the controlled consumption of
spare parts and products
Production
Improvements in activities related to water capture, discharge and
distribution, such as :
• Staff performance in the measurement and analysis of results
• Implementation of a corrective action system as well as more
efficient monitoring of the execution of action plans
• Better control of production through the use of scoreboards and
management by objectives
Improvements in activities related to water treatment :
• More efficient organization
• Greater reliability of the results of water testing and analysis
• Faster response of staff in addressing water quality problems
Technical supervision
Improvements in activities related to studies, surveillance and internal
monitoring :
• Better management of staff resources
• Better administrative management
• Easier exploitation of notice of tenders since the adoption of a
quality management system by SONES
• Better management of energy resources
Marketing and sales
• Improved planning and deployment of staff
• Better organization, increasing SDE's capacity to meet demands
without extra staff
• More efficient communication system
• Significant improvement in the response time for replacing meters
291Economic benefits of standards Senegal – Water Senegal
• Continual progress in customer satisfaction – the total number
of customers satisfied with tap water delivered by SDE grew from
45 % in 2005 to 86 % in 2010
Engineering
• Improved monitoring of supply planning
• Improved conformity of engineering works by following speci-
fications and keeping data files on supplies received and on
nonconformities
• Setting up of a system allowing the assessment of engineering
works immediately after completion
• Better administrative and technical organization through the
development of procedures
Maintenance
• Setting up of a critical analysis system for certain practices
• Establishment of a more transparent organization with a more
balanced distribution of workload
• Greater visibility of staff activities resulting in increased productivity
Between 2004 and 2010, SDE made significant efforts to ensure the
smooth operation of all its facilities. Positive results were confirmed
by a maintenance audit conducted in 2010, showing a 95 % rate of
availability of equipment.
10.9.2 Specific considerations about work accidents
A safety, quality and environmental initiative enabled SDE to achieve
improvements in the rate of accidents. The record covered 14 years
(1997 to 2010) and, despite an atypical peak in 2000 (31 accidents) and
2001 (29 accidents), the number of accidents has steadily declined.
292 Economic benefits of standards Senegal – Water Senegal
Year Accidents Lost workdays Frequency rate How serious
1997 24 510 8.8 0.22010 9 160 3.76 0.07
Table 6 – Number of accidents
This situation shows the positive impact of SDE's commitment to
OHSAS 18001and certification against this standard.
Evolution of productivity
The quality management system has also enabled SDE to analyze
and monitor key productivity rates. As can be seen from Table 7,
productivity has steadily increased.
2006 2007 2008 2009 2010 Improvement 2006/2010
Turnover/agent (M XOF/agent) 41.18 47.75 49.69 52.38 69.26 68.19 %Number of subscribers/agent 372.6 404.7 425.6 446.2 456.5 22.51 %M3 sold/agent (Km3/agent) 90.6 96.03 97.1 98.43 100.9 11.36 %
Table 7 – Productivity 2006-2010
10.10 Evaluation of results
The application of the methodology for assessing the economic ben-
efits of standards for SDE has revealed a contribution to the company
EBIT of XOF 1 399 552 063 (about USD 2 700 000) corresponding to
1.91 % of the company’s total annual turnover in 2010.
This result was influenced by the following factors :
• The information from persons interviewed was mainly qualitative
and therefore difficult, and sometimes impossible, to quantify
• The difficulty of determining precisely which part of a given impact
was attributable to the use of standards
293Economic benefits of standards Senegal – Water Senegal
• The adoption of a prudent approach based on always assuming
the lower value of a given range (for example, in the case of the
accounting and financial management business function, costs
attributed to staff were estimated between 70 % and 80 %, in
which case the 70 % figure was used)
This indicates that, while already significant, the impact of standards
for SDE is most probably underestimated. Information gathered
through the interviews has also indicated that there is still potential
for further process and performance improvements.
Some examples are given below :
• Corrective actions can be taken to increase the network yield,
especially in flooded areas where the main connections are not
systematically cut off when populations move, thus causing
significant and continual leakage. This can make it impossible to
access the areas to read meters or locate leakages
• The rate of recovery can be further increased by educating popula-
tions about certain detrimental practices such as, among others,
damaging the network to bring water to cattle
• A new payment system, such as by Internet or mobile phone,
would help to further increase customer satisfaction
It should be emphasized that, for SDE, the benefits of using standards
have primarily been derived from a coherent and comprehensive
application of the ISO 9001 and ISO 14001 philosophy. This has
resulted in well-structured processes, in the use of indicators to
monitor efficiency and effectiveness, and in the ability to undertake
corrective or improvement actions – all of which have contributed
to performance improvement.
294 Economic benefits of standards Senegal – Water Senegal
10.11 Conclusions
The study has demonstrated that the use of standards contributes
to the creation of value for SDE, with an estimated contribution to
the company EBIT of XOF 1 399 552 063 (about USD 2 700 000) cor-
responding to nearly 2 % of the company's total annual turnover.
Use of standards is sometimes perceived as costly and therefore
an obstacle to economic development. However, this assessment
demonstrates that compliance with, and effective use of, standards
is often accompanied by an improvement in productivity, a better
customer satisfaction policy and enhanced economic performance.
This study has shown the positive impact of standardization for
SDE. It provides a concrete example that can help to better inform
Senegalese businesses of the advantages offered by standardization
and, hopefully, to promote a proactive attitude towards standards.
While the result of applying the ISO methodology to a private com-
pany like SDE is convincing, it should be taken into account that
SDE operates in an industry where competition is non-existent and,
from a purchasing perspective, where customers do not have much
choice. It would be interesting to carry out other studies of private
companies operating in a “ normal “ competitive environment.
Finally, the adaptation and application of the assessment methodo-
logy to the public sector (non-profit enterprise) remains a necessity
for developing countries like Senegal.
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